# Sunstone Hotel Investors, Inc. (SHO) Informational only - not investment advice. CIK: 0001295810 SIC: 7011 Hotels & Motels SIC breadcrumb: [Services](/division/I/) > [SIC Major Group 70](/major-group/70/) > [SIC 7011 Hotels & Motels](/industry/7011/) Latest 10-K filed: 2026-02-27 SEC page: https://www.sec.gov/edgar/browse/?CIK=1295810 Filing source: https://www.sec.gov/Archives/edgar/data/1295810/000110465926021440/sho-20251231x10k.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001104659-26-021440 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001295810.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 960,126,000 USD | 2025 | verified | | Net income | 24,568,000 USD | 2025 | verified | | Assets | 3,029,005,000 USD | 2025 | verified | | Free cash flow | 78,714,000 USD | 2025 | computed | | Net margin | 2.56% | 2025 | computed | | Revenue YoY | +6.00% | 2025 | computed | | ROE | 1.26% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | SHO | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 2.6% | 5.8% | 35 | 18 | | Revenue growth | 6.0% | 3.9% | 82 | 18 | | FCF margin | 8.2% | 9.6% | 29 | 18 | | ROE | 1.3% | 7.0% | 38 | 14 | | ROA | 0.8% | 2.9% | 35 | 18 | | Liabilities / equity | 0.56 | 7.36 | 8 | 14 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7011 Hotels & Motels, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 960126000 | USD | 2025 | 2026-02-27 | | Net income | 24568000 | USD | 2025 | 2026-02-27 | | Assets | 3029005000 | USD | 2025 | 2026-02-27 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001295810.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2009 | 2010 | 2011 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | | 1,159,053,000 | 1,115,167,000 | 267,906,000 | 509,150,000 | 912,053,000 | 986,480,000 | 905,809,000 | 960,126,000 | | Net income | | | | 140,677,000 | 153,004,000 | 259,059,000 | 142,793,000 | -410,506,000 | 32,995,000 | 90,766,000 | 206,708,000 | 43,262,000 | 24,568,000 | | Diluted EPS | -4.17 | 0.18 | 0.45 | | | | | -1.93 | 0.06 | 0.34 | 0.93 | 0.14 | 0.04 | | Operating cash flow | | | | 287,788,000 | 306,791,000 | 305,291,000 | 290,920,000 | -116,705,000 | 28,370,000 | 209,384,000 | 198,131,000 | 170,376,000 | 181,760,000 | | Capital expenditures | | | | 182,185,000 | 115,097,000 | 159,076,000 | 95,958,000 | 51,440,000 | 63,663,000 | 128,576,000 | 110,131,000 | 157,378,000 | 103,046,000 | | Dividends paid | | | | | 163,014,000 | 177,622,000 | 170,166,000 | 156,271,000 | 13,693,000 | 24,824,000 | 59,825,000 | 90,966,000 | 86,393,000 | | Share buybacks | | | | | | | 50,088,000 | 103,894,000 | | 108,442,000 | 56,403,000 | 27,238,000 | 102,591,000 | | Assets | | | | 3,739,234,000 | 3,857,812,000 | 3,972,833,000 | 3,918,974,000 | 2,985,717,000 | 3,041,049,000 | 3,082,817,000 | 3,149,321,000 | 3,106,639,000 | 3,029,005,000 | | Liabilities | | | | 1,207,402,000 | 1,275,634,000 | 1,261,662,000 | 1,297,903,000 | 896,338,000 | 801,275,000 | 997,856,000 | 982,683,000 | 1,002,619,000 | 1,084,387,000 | | Stockholders' equity | | | | 2,482,770,000 | 2,533,738,000 | 2,663,486,000 | 2,574,838,000 | 2,048,644,000 | 2,198,967,000 | 2,084,961,000 | 2,166,638,000 | 2,104,020,000 | 1,944,618,000 | | Cash and cash equivalents | | | | 369,537,000 | 488,002,000 | 809,316,000 | 816,857,000 | 368,406,000 | 120,483,000 | 101,223,000 | 426,403,000 | 107,199,000 | 109,189,000 | | Free cash flow | | | | 105,603,000 | 191,694,000 | 146,215,000 | 194,962,000 | -168,145,000 | -35,293,000 | 80,808,000 | 88,000,000 | 12,998,000 | 78,714,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2009 | 2010 | 2011 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | 22.35% | 12.80% | | 6.48% | 9.95% | 20.95% | 4.78% | 2.56% | | Return on equity | | | | 5.67% | 6.04% | 9.73% | 5.55% | -20.04% | 1.50% | 4.35% | 9.54% | 2.06% | 1.26% | | Return on assets | | | | 3.76% | 3.97% | 6.52% | 3.64% | -13.75% | 1.08% | 2.94% | 6.56% | 1.39% | 0.81% | | Liabilities / equity | | | | 0.49 | 0.50 | 0.47 | 0.50 | 0.44 | 0.36 | 0.48 | 0.45 | 0.48 | 0.56 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/SHO/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001295810.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.08 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.08 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.19 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 247,700,000 | 12,260,000 | 0.06 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 219,225,000 | 123,120,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 217,166,000 | 9,287,000 | 0.05 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 247,481,000 | 22,356,000 | 0.11 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 226,392,000 | -744,000 | 0.00 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 214,770,000 | -3,157,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 234,065,000 | 1,262,000 | 0.01 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 259,772,000 | 6,780,000 | 0.03 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 229,323,000 | -3,002,000 | -0.02 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 236,966,000 | 3,170,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 259,709,000 | 15,882,000 | 0.08 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 277,109,000 | 25,863,000 | 0.14 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from SHO's latest 10-K: [/company/SHO/business/](/company/SHO/business/). ## Risk Factors Verbatim Item 1A Risk Factors from SHO's latest 10-K: [/company/SHO/risk-factors/](/company/SHO/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1295810/000110465926091907/sho-20260630x10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ Overview ​ Sunstone Hotel Investors, Inc. (the “Company,” “we,” “our” or “us”) is a Maryland corporation. We operate as a self-managed and self-administered real estate investment trust (“REIT”). A REIT is a corporation that directly or indirectly owns real estate assets and has elected to be taxable as a real estate investment trust for federal income tax purposes. To qualify for taxation as a REIT, the REIT must meet certain requirements, including regarding the composition of its assets and the sources of its income. REITs generally are not subject to federal income taxes at the corporate level as long as they pay stockholder dividends equivalent to 100% of their taxable income. REITs are required to distribute to stockholders at least 90% of their REIT taxable income. We own, directly or indirectly, 100% of the interests of Sunstone Hotel Partnership, LLC (the “Operating Partnership”), which is the entity that directly or indirectly owns our hotels. We also own 100% of the interests of our taxable REIT subsidiary, Sunstone Hotel TRS Lessee, Inc. (the “TRS Lessee”), which, directly or indirectly, leases all of our hotels from the Operating Partnership, and engages independent third parties to manage our hotels. ​ We own hotels in convention, urban, and resort destinations that benefit from significant barriers to entry by competitors and diverse economic drivers. As of June 30, 2026, we owned 14 hotels, one of which, Hyatt Regency San Francisco, was classified as held for sale because it was under contract for sale and met all held-for-sale criteria. The hotel sale subsequently closed in July 2026. All of our hotels are operated under nationally recognized brands, including Oceans Edge Resort & Marina, which was rebranded as Hilton Key West Resort & Marina on July 1, 2026. Excluding Hyatt Regency San Francisco, our hotels average 475 rooms in size. ​ Maui Storms ​ During the first quarter of 2026, the Hawaiian Islands experienced multiple severe storms that impacted our Wailea Beach Resort. The resort remained open during and following the storms that occurred in March but sustained wind and water damage in some of the guestrooms, public areas, and portions of the resort’s roofs. We maintain customary property, casualty, environmental, flood, and business interruption insurance at all of our hotels; however, such coverage is subject to certain limitations, conditions, and deductibles. ​ We incurred storm-related repair and restoration costs, net of insurance proceeds, of $0.6 million, which were recorded in repairs and maintenance expense in the consolidated statements of operations for the three and six months ended June 30, 2026. In the second quarter of 2026, we recognized a $1.6 million loss at Wailea Beach Resort related to the write-off of storm-damaged assets, which was recorded in impairment and other losses in the consolidated statements of operations. During the second quarter of 2026, we also recognized $2.4 million in property insurance claim recoveries at Wailea Beach Resort, which were recorded in interest and other income in the consolidated statements of operations. Additionally, we recognized $1.2 million in business interruption insurance proceeds due to storm-related lost profits at the resort which were recorded in other operating revenue in the consolidated statements of operations. ​ We continue to work with our insurers to pursue additional recoveries related to repair and restoration costs. Additional storm-related costs will be recognized as incurred. Any additional business interruption insurance recoveries, if realized, are expected to be recognized in the period in which the proceeds are received or the related contingency is resolved and amounts become realizable. ​ Operating Activities ​ Revenues. Substantially all of our revenues are derived from the operation of our hotels. Specifically, our revenues consist of the following: ​ [[GREPCENT_TABLE]] [["","\u25cf","Room revenue, which is comprised of revenue realized from the sale of rooms at our hotels;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Food and beverage revenue, which is comprised of revenue realized in the hotel food and beverage outlets as well as banquet and catering events; and"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Other operating revenue, which includes ancillary hotel revenue and other items primarily driven by occupancy such as telephone/internet, parking, spa, destination and resort fees, entertainment, and other guest services. Additionally, this category includes, among other things, attrition and cancellation revenue, tenant revenue derived from hotel space and marina slips leased by third parties, winery revenue, any business interruption proceeds and any performance guarantee."]] [[/GREPCENT_TABLE]] ​ 23 Table of Contents Expenses. Our expenses consist of the following: ​ [[GREPCENT_TABLE]] [["","\u25cf","Room expense, which is primarily driven by occupancy and, therefore, has a significant correlation with room revenue;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Food and beverage expense, which is primarily driven by hotel food and beverage sales and banquet and catering bookings and, therefore, has a significant correlation with food and beverage revenue;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Other operating expense, which includes the corresponding expense of other operating revenue, advertising and promotion, repairs and maintenance, utilities, and franchise costs;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Property tax, ground lease and insurance expense, which includes the expenses associated with property tax, ground lease and insurance payments, each of which is primarily a fixed expense, however property tax is subject to regular revaluations based on the specific tax regulations and practices of each municipality, along with our cash and noncash operating lease expenses, general excise tax assessed by Hawaii and taxes assessed on commercial rents by San Francisco and Texas;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Other property-level expenses, which includes our property-level general and administrative expenses, such as payroll, benefits, and other employee-related expenses, contract and professional fees, credit and collection expenses, employee recruitment, relocation and training expenses, labor dispute expenses, consulting fees, management fees, and other expenses;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Corporate overhead expense, which includes our corporate-level expenses, such as payroll, benefits, and other employee-related expenses, amortization of deferred stock compensation, business acquisition and due diligence expenses, legal expenses, contract and professional fees, board of director expenses, entity-level state franchise and minimum taxes, travel expenses, office rent, and other customary expenses;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Depreciation and amortization expense, which includes depreciation on our hotel buildings, improvements, furniture, fixtures and equipment (\u201cFF&E\u201d), along with amortization on our franchise fees and certain intangibles. Additionally, this category includes depreciation and amortization related to FF&E for our corporate office; and"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Impairment and other losses, which includes the charges we have recognized to reduce the carrying values of certain hotels on our balance sheet to their fair values in association with our impairment evaluations, along with the write-off of any development costs associated with abandoned projects or any physical property damage due to unforeseen events such as natural disasters."]] [[/GREPCENT_TABLE]] ​ Other Revenue and Expense. Other revenue and expense consists of the following: ​ [[GREPCENT_TABLE]] [["","\u25cf","Interest and other income, which includes interest we have earned on our restricted and unrestricted cash accounts, as well as any energy or other rebates, net property insurance proceeds we have received, miscellaneous income, and any gains or losses we have recognized on sales or redemptions of assets other than real estate investments;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Interest expense, which includes interest expense incurred on our outstanding fixed and variable rate debt, gains or losses on interest rate derivatives, amortization of deferred financing costs, and any loan fees incurred on our debt, net of any capitalized interest;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Gain (loss) on sale of assets, net, which includes the gains or losses we recognized on our hotel sales, including the net gains related to the resolution of contingencies, that do not qualify as discontinued operations;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Income tax (provision) benefit, net, which includes federal and state income taxes charged to us net of any refundable credits or refunds received, any adjustments to deferred tax assets, liabilities or valuation allowances, and any adjustments to unrecognized tax positions, along with any related interest and penalties incurred; and"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Preferred stock dividends, net of gain on repurchases, which includes dividends accrued on our Series G Cumulative Redeemable Preferred Stock (\u201cSeries G preferred stock\u201d), Series H Cumulative Redeemable Preferred Stock (\u201cSeries H preferred stock\u201d) and Series I Cumulative Redeemable Preferred Stock (\u201cSeries I preferred stock\u201d), net of any preferred stock repurchased at a discount to its carrying value, along with the related write-off of any original issuance costs previously included in additional paid in capital."]] [[/GREPCENT_TABLE]] ​ 24 Table of Contents Operating Performance Indicators. The following performance indicators are commonly used in the hotel industry: ​ [[GREPCENT_TABLE]] [["","\u25cf","Occupancy, which is the quotient of total rooms sold divided by total rooms available;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Average daily room rate, or ADR, which is the quotient of room revenue divided by total rooms sold;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Revenue per available room, or RevPAR, which is the product of occupancy and ADR, and does not include food and beverage revenue, or other operating revenue;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","RevPAR index, which is the quotient of a hotel\u2019s RevPAR divided by the average RevPAR of its competitors, multiplied by 100. A RevPAR index in excess of 100 indicates a hotel is achieving higher RevPAR than the average of its competitors. In addition to absolute RevPAR index, we monitor changes in RevPAR index;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","EBITDAre, which is net income excluding: interest expense; benefit or provision for income taxes, including any changes to deferred tax assets, liabilities or valuation allowances and income taxes applicable to the sale of assets; depreciation and amortization; gains or losses on disposition of depreciated property (including gains or losses on change in control); and any impairment write-downs of depreciated property;"]] [[/GREPCENT_TABLE]] ​ [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1295810/000110465926021440/sho-20251231x10k.htm Complete FY 2025 MD&A: /company/SHO/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-27 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ The following discussion should be read together with the consolidated financial statements and related notes included elsewhere in this report. This discussion focuses on our financial condition and results of operations for the year ended December 31, 2025 as compared to the year ended December 31, 2024. A discussion and analysis of the year ended December 31, 2024 as compared to the year ended December 31, 2023 is included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 21, 2025, under the caption “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” ​ Overview ​ Sunstone Hotel Investors, Inc. is a Maryland corporation. We operate as a self-managed and self-administered real estate investment trust (“REIT”). A REIT is a corporation that directly or indirectly owns real estate assets and has elected to be taxable as a real estate investment trust for federal income tax purposes. To qualify for taxation as a REIT, the REIT must meet certain requirements, including regarding the composition of its assets and the sources of its income. REITs generally are not subject to federal income taxes at the corporate level as long as they pay stockholder dividends equivalent to 100% of their taxable income. REITs are required to distribute to stockholders at least 90% of their REIT taxable income. We own, directly or indirectly, 100% of the interests of Sunstone Hotel Partnership, LLC, (the “Operating Partnership”), which is the entity that directly or indirectly owns our hotels. We also own 100% of the interests of our taxable REIT subsidiary, Sunstone Hotel TRS Lessee, Inc. (the “TRS Lessee”), which, directly or indirectly, leases all of our hotels from the Operating Partnership, and engages independent third parties to manage our hotels. ​ We own hotels in convention, urban, and resort destinations that benefit from significant barriers to entry by competitors and diverse economic drivers. As of December 31, 2025, we owned 14 hotels. All of our hotels are operated under nationally recognized brands, except the Oceans Edge Resort & Marina, which operates independently. ​ The following tables summarize our total portfolio and room data from January 1, 2024 through December 31, 2025: [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","2024"],["Portfolio Data\u2014Hotels","\u200b","\u200b","\u200b","\u200b","\u200b"],["Number of hotels\u2014beginning of year","","15","","14","\u200b"],["Add: Acquisitions","\u200b","\u2014","\u200b","1","\u200b"],["Less: Dispositions","","(1)","","\u2014","\u200b"],["Number of hotels\u2014end of year","","14","\u200b","15","\u200b"]] [[/GREPCENT_TABLE]] 35 Table of Contents ​ [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","2024"],["Portfolio Data\u2014Rooms","\u200b","\u200b","\u200b","\u200b","\u200b"],["Number of rooms\u2014beginning of year","","7,253","","6,675","\u200b"],["Add: Acquisitions","\u200b","\u2014","\u200b","630","\u200b"],["Less: Dispositions","\u200b","(252)","\u200b","\u2014","\u200b"],["Less: Renovation adjustments, net (1)","","(2)","\u200b","(52)","\u200b"],["Number of rooms\u2014end of year","","6,999","","7,253","\u200b"],["Average rooms per hotel\u2014end of year","","500","","484","\u200b"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["(1)","Concurrent with our renovations, we removed two rooms at the Wailea Beach Resort to form two residential-style suites in 2025. Similarly, in 2024, we removed fifty-two rooms at The Confidante Miami Beach in conjunction with its transition to Andaz Miami Beach to increase the number of suites and premium room types. In addition, in 2024 we removed two rooms at Wailea Beach Resort to form two residential-style suites and added two rooms at Marriott Long Beach Downtown."]] [[/GREPCENT_TABLE]] ​ 2025 Summary ​ Demand. Excluding The Confidante Miami Beach and Renaissance Long Beach (the “Two Renovation Hotels”) due to their significant renovations as they transitioned to Andaz Miami Beach and Marriott Long Beach Downtown, respectively, occupancy at the 11 hotels we owned during the entirety of 2024 and 2025 (the “Comparable Portfolio”) improved as follows: ​ [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","Quarters Ended","\u200b","Year Ended"],["\u200b","March 31","June 30","September 30","December 31","\u200b","December 31"],["2025","73.1","%","77.9","%","73.6","%","68.4","%","\u200b","73.2","%"],["2024","72.1","%","76.6","%","72.9","%","67.0","%","\u200b","72.2","%"]] [[/GREPCENT_TABLE]] ​ During 2025, we saw continued strength in group demand, primarily at Hyatt Regency San Francisco, Wailea Beach Resort, The Bidwell Marriott Portland, Montage Healdsburg, and Hilton San Diego Bayfront. In addition, we saw strong corporate demand at The Bidwell Marriott Portland, The Westin Washington, DC Downtown, Marriott Boston Long Wharf, and Hyatt Regency San Francisco driven in part by airline crew contracts. These positive impacts were partially offset by the slower recovery of leisure demand in Maui and by displacement associated with the completion of a rooms renovation at the Wailea Beach Resort, both of which negatively affected transient demand, as well as by lower leisure demand at Oceans Edge Resort & Marina. In addition, Hilton San Diego Bayfront, Marriott Boston Long Wharf, and The Westin Washington, DC Downtown were negatively impacted by a reduction in government-related travel, including organizations whose conferences are partially funded by the government and the effect of the government shut down in the fourth quarter of 2025. ​ Disposition. In June 2025, we sold the Hilton New Orleans St. Charles, located in Louisiana for a gross sale price of $47.0 million and recorded a loss of $8.8 million. ​ Significant Renovations. During 2025, our significant renovations primarily consisted of the completion of the Andaz Miami Beach transformation, resulting in the resort reopening in May 2025, a rooms renovation at Wailea Beach Resort, and renovations of the meeting spaces at Hyatt Regency San Antonio Riverwalk and Hilton San Diego Bayfront. ​ Debt Transactions. In April 2025, we exercised our option to extend the maturity date of the previous Term Loan 3 from May 2025 to May 2026. ​ In September 2025, we entered into the Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which expanded our unsecured debt borrowing capacity and extended the maturity of our term loans. The Amended Credit Agreement continues to provide for a $500.0 million revolving credit facility and increases the aggregate amount of our term loan facilities from $675.0 million (on four existing term loans) to $850.0 million (on three new term loans). Inclusive of extension options, the revolving credit facility and new term loan facilities under the Amended Credit Agreement mature at various points in 2030 and 2031, respectively, but are freely prepayable at any time. The revolving credit facility and the new term loan facilities bear interest pursuant to a leverage-based pricing grid ranging from 1.40% to 2.25% and 1.35% to 2.20%, respectively, over the applicable term SOFR. In connection with the new term loan facilities, we entered into a series of interest rate swaps to lower our borrowing cost and better manage interest rate risk. ​ 36 Table of Contents For more details on our debt transactions, see disclosures under the Debt caption included in “Liquidity and Capital Resources” below. ​ Capital Transactions. During 2025, we repurchased the following shares under our stock repurchase program: ​ [[GREPCENT_TABLE]] [["","\u25cf","Common stock: 11,589,722 shares at an average purchase price per share of $8.83;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Series H Cumulative Redeemable Preferred Stock (\u201cSeries H preferred stock\u201d): 54,097 shares at an average purchase price per share of $20.28; and"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Series I Cumulative Redeemable Preferred Stock (\u201cSeries I preferred stock\u201d): 9,027 shares at an average purchase price per share of $19.25."]] [[/GREPCENT_TABLE]] ​ As of December 31, 2025, approximately $323.9 million of authorized capacity remained under our stock repurchase program. ​ Operating Activities ​ Revenues. Substantially all of our revenues are derived from the operation of our hotels. Specifically, our revenues consist of the following: ​ [[GREPCENT_TABLE]] [["","\u25cf","Room revenue, which is comprised of revenue realized from the sale of rooms at our hotels;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Food and beverage revenue, which is comprised of revenue realized in the hotel food and beverage outlets as well as banquet and catering events; and"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Other operating revenue, which includes ancillary hotel revenue and other items primarily driven by occupancy such as telephone/internet, parking, spa, destination and resort fees, entertainment, and other guest services. Additionally, this category includes, among other things, attrition and cancellation revenue, tenant revenue derived from hotel space and marina slips leased by third parties, winery revenue, any business interruption proceeds and any performance guarantee or reimbursements to offset net losses."]] [[/GREPCENT_TABLE]] ​ Expenses. Our expenses consist of the following: ​ [[GREPCENT_TABLE]] [["","\u25cf","Room expense, which is primarily driven by occupancy and, therefore, has a significant correlation with room revenue;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Food and beverage expense, which is primarily driven by hotel food and beverage sales and banquet and catering bookings and, therefore, has a significant correlation with food and beverage revenue;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Other operating expense, which includes the corresponding expense of other operating revenue, advertising and promotion, repairs and maintenance, utilities, and franchise costs;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Property tax, ground lease and insurance expense, which includes the expenses associated with property tax, ground lease and insurance payments, each of which is primarily a fixed expense, however property tax is subject to regular revaluations based on the specific tax regulations and practices of each municipality, along with our cash and noncash operating lease expenses, general excise tax assessed by Hawaii and taxes assessed on commercial rents by San Francisco and Texas;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Other property-level expenses, which includes our property-level general and administrative expenses, such as payroll, benefits, and other employee-related expenses, contract and professional fees, credit and collection expenses, employee recruitment, relocation and training expenses, labor dispute expenses, consulting fees, management fees, and other expenses;"]] [[/GREPCENT_TABLE]] ​ [[GREPCENT_TABLE]] [["","\u25cf","Corporate overhead expense, which includes our corporate-level expenses, such as payroll, benefits, and other employee-related expenses, amortization of deferred stock compensation, business acquisition and due diligence expenses, legal expenses, contract and professional fees, board of director expenses, entity-level state franchise and minimum taxes, travel expenses, office rent, and other customary expenses; and"]] [[/GREPCENT_TABLE]] ​ [[ [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/SHO/mda/fy2025/ All MD&A years: /company/SHO/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/SHO/mda/fy2024/): filed 2025-02-21; accession 0001558370-25-001297 (https://www.sec.gov/Archives/edgar/data/1295810/000155837025001297/sho-20241231x10k.htm) - [FY 2023 MD&A](/company/SHO/mda/fy2023/): filed 2024-02-23; accession 0001558370-24-001615 (https://www.sec.gov/Archives/edgar/data/1295810/000155837024001615/sho-20231231x10k.htm) - [FY 2022 MD&A](/company/SHO/mda/fy2022/): filed 2023-02-23; accession 0001558370-23-001869 (https://www.sec.gov/Archives/edgar/data/1295810/000155837023001869/sho-20221231x10k.htm) - [FY 2021 MD&A](/company/SHO/mda/fy2021/): filed 2022-02-23; accession 0001558370-22-001708 (https://www.sec.gov/Archives/edgar/data/1295810/000155837022001708/sho-20211231x10k.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7011 Hotels & Motels) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/SHO.md · JSON record: /company/SHO.json · verified financials: /company/SHO/financials.json / /company/SHO/financials.csv · machine TOC for the whole site: /llms.txt